Real Estate Information Archive

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After many years of saving up for a down payment, you may now be in a position to buy a new house. Before you can do that, there are some things that you need to be aware of when figuring out what you can qualify for, such as negative equity or the decline in the supply of inventory. According to Steve Cook, managing editor of Real Estate Economy Watch, the year began with inventories only 2% above where they were a year ago. To help determine whether or not 2014 is a good time for you to sell your home, you should always contact a local real estate professional to assist you. Additionally, your equity and your credit scores affect what you qualify for when it comes to a mortgage.

First, it is crucial that you understand the meaning of what negative equity is before any action can be taken. According to Investopedia.com, negative equity is when the value of an asset falls below the outstanding balance on the loan used to purchase that asset. Being in negative equity may have some consequences attached; however, it is never too late to fix the problem and move forward from it. A real estate professional is very knowledgeable about the ins and outs of their business and it is their job to assist you with any kind of issue that you may be faced with, including your equity. Agents are valuable resources that can provide you with the most accurate information about how to correct the problems and take the proper action. If you are unsure if the equity of your current home is negative, a Home Equity Calculator could be useful, providing you with the exact value of your home and where you need to go from there.

One of the best ways you can reduce your new monthly mortgage is to improve your credit score before the process actually begins. In addition to paying your bills on time, be sure to reduce your debts (especially those with high-interest rates) and keep unused lines of credit open. All of these strategies can improve your score and allow you to qualify for the best mortgage interest rates available. You can check your credit score on a site like AnnualCreditReport.com a few times a year to keep track of any areas of concern or improvements.

Making the decision to move to a new home and figuring out how to sell your current one can be a challenge. The good news is that you do not have to go through the process alone. There are plenty of real estate agents that are patiently waiting for your call. For additional questions, comments, or concerns, connect with Don Roth at 717-579-2879 or email donroth@earthlink.com

Much of the country is looking at one more very big bite of winter before spring officially begins, but for the residential real estate market, spring is already underway—and new home buyers are sprouting everywhere.

Job creation so far this year is 30% stronger than in the same period last year. Unemployment is close to a low of more than nine years. Wages and income are also starting to pick up to growth levels we haven’t seen since 2009.

And with more money in their bank accounts, consumers are feeling a boost in confidence that leads to big purchases … like homes! This year’s economic growth gives them another reason to buy sooner rather than later because stronger economic growth also means higher interest rates.

January and February saw rates in line with what we saw at the end of 2016. But in the last two weeks, we’ve seen the average rate for a 30-year conforming mortgage increase by almost a quarter of a point. That’s because the market is expecting the Federal Reserve to raise short-term rates when the board of governors meets this week.

Mortgage rates will likely stay close to this level until we hear more about additional rate increases later this year. The expectation is for three increases this year. If economic data continue to show growth in inflation and wages, those three increases could actually become four.

This means that rates will continue to rise—we’re more likely to see a movement of 10-25 basis points in one- to two-week spurts, as new data and new comments from the Fed indicate rate policy changes are imminent. Those spurts will likely be followed by weeks with little change in rates.

The upside of higher rates is that it is getting easier to get a mortgage. The most widely followed measure of mortgage credit access from the Mortgage Bankers Association indicates that access has expanded 6.5% since September.

Arguably the biggest challenge to buyers this spring will be simply finding a home to buy and getting it successfully under contract. That’s because the supply of homes for sale is at an all-time low, and yet demand is strong and getting stronger.

We started the year with the lowest inventory of homes available for sale that we’ve ever seen on realtor.com. While we did see inventory grow 2% in February, total inventory was down 11% over last year.

Low inventory and strong supply are leading to inventory moving faster and faster as measured by median days on market. The median number of days on market in February was 90 days, six days less than last year. We also saw 27% of all listings selling in less than 30 days. Last year, we saw that happen in mid- to late March, so this year’s timetable is about three weeks ahead.

The early birds who decided to buy in the winter faced less competition and enjoyed lower rates than we are seeing now. It gets more expensive and more competitive going forward, but the early(ish) buyer, at this point, is still likely to come out on top, when you consider that prices and rates are likely to be much higher later in the year.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Dec. 14 is the date credit markets most anticipate. By 2:00 pm ET on Dec. 14, we’ll know if the Federal Reserve will raise the federal funds rate 25 basis points like it did on Dec. 16, 2015.

At this point, does it really matter?

We’re beginning to think not. Yields and interest rates have run higher over the past month. Last year at this time, we saw a similar run. Mortgage rates trended higher through much of Oct. 2015, but then they plateaued by early November. By Dec. 2015, they were already trending lower, and they continued to trend mostly lower until early September.

You’ve likely heard the radio commercials: Lock in your mortgage rate now because the Fed is expected to raise interest rates in December. These commercials aren’t wrong; the Fed is expected to raise interest rates in December. The question is, is the impending interest-rate hike already priced into mortgage rates? We suspect that it is. Mortgage rates have already shown signs of plateauing (and even rolling over a bit) in the past week.

If we take past as prologue (and that’s not always a good idea), an argument can be forwarded that mortgage rates are unlikely to rise much higher. If we were to bet (again, not always a good idea), we would bet that mortgage rates won’t rise much higher, but neither will they fall much either. A tight range, like the one maintained though August, could very well hold through the election.

Of course, that could all change after the election, so locking in a decent rate today wouldn’t be the worse decision a borrower could make.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

After such a strong surge in September, a little slippage should be expected.

Home builder sentiment slipped slightly, posting at 63 on the Wells Fargo/NAHB’s Sentiment Index for October. This was a two-point slip compared to the September reading of 65. That said, the September reading was a five-point surge over the August reading. Builders remain overwhelmingly optimistic. And they’re even more optimistic about future home sales: the future sales component of the index rose a point to post at 72.

Sentiment correlates positively with action. The action is still good, though the headline reading was misleading.

New-home starts fell 9% to a 1.047 million units on annualized rate in September. The headline number would appear to temper optimism. But when we look closer, we find that the drop is entirely related to the volatile multi-family component, where starts fell 38%. The good news is that the larger, more important single-family component was up a strong 8.1% to 783,000 units for the month.

Now that a growing cadre of younger buyers is finally taking to homeownership, home builder sentiment and activity should remain elevated as we head into 2017.

It’s always nice to have a report corroborated by other sources. Last week, we reported on the increase in millennial interest in homeownership. This week Realtor.com reports that first-timers (mostly the young) will compose 52% of prospective home buyers in 2017. Last year, the same survey found that only 33% of prospective buyers were young first-time buyers. In addition, Zillow compiled a survey of 13,000 respondents and found that half were under age 36. These younger buyers accounted for 47% of all purchases.

Of course, this is all good news for housing, both new and existing. It’s also good news for the economy at large. Housing activity – construction, sales, materials, furnishings, lending, retail, and other services – account for roughly 12% of gross domestic product. Housing, more than any market segment, has pushed the economy forward over the past five years. Given the trend of younger first-time buyers entering the market, we expect housing to remain the lead engine on the economic train.

That more millenials are finally embracing homeownership is no surprise (though we expected the trend to take hold sooner than later). Despite the surfeit of reports expounding the benefits of renting, owning imparts important psychic benefits renting can’t match. Knowing that you can paint a wall, decorate a room, or hang a picture to your liking without defending your actions is what makes a house a home, and you can really only have home if you own the house.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

If your house feels like it’s in a perpetual state of clutter, it may not be your fault. Have you ever dated the wrong person? You know, “it’s not you, it’s me?” Well, it’s not you, it’s the tools you’re using. If you’re using the wrong tools for the job, organization just isn’t going to happen.

To have a home that’s not only clean, but also totally organized, buy these six organizing essentials. (You’ll thank yourself later.)

For Your Spice Collection

This spice organizer looks simple… almost too simple. But looks can be deceiving – the tiered organizer is life-changing when it comes to spice organization. It’s sized to fit inside any cabinet and doesn’t require nails or screws to install.

By stacking your spices, you can get a full view of your spice setup and, best of all, you’ll never have to dig through the onion powder and oregano to get to the paprika again.

Your pots, pans and cutting boards may be hidden behind cabinet doors, but it makes a world of difference for your nightly cooking endeavors when they’re neatly stacked and separated. Bonus: You can set these sturdy babies right inside your cabinets, no installation is required.

For Brooms, Mops and Swiffers

We love this gadget because it’s super easy to install, doesn’t use a lot of space and keeps your mops and brooms off of the floor (where they’ll can collect dirt and dust.)

For Bathroom Supplies and Styling Tools

Got a tiny bathroom? To maximize on storage space in the loo, invest in this ingenious slim slide-out shelf that can fit between your vanity and your shower. Tip: This organizer also works great between the washer and dryer or the refrigerator and cabinets.

For Toys, Books and Games

These colorful storage bins are perfect for picking up clutter, fast. They can hold toys, books, games and just about anything else you want to toss in and tuck away. Plus, they’re machine washable – unlike other fabric bins that will lose their shape if machine washed.

For Laundry Supplies

A few of these baskets might actually make laundry bearable (no promises, though). Use one for stain removers, fabric softeners and detergents, and use another for lost laundry items like solo socks, loose change and bobby pins. Look at you, being all organized.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Much has been made about the rising level of student-loan debt. Today, outstanding student-loan debt stands at nearly $1.3 trillion. It’s natural to conclude that high student-loan debt correlates with the falling homeownership trend among millennials.

But perhaps the conclusion is unwarranted. Data gathered by Freddie Mac are inconclusive, and we’re not terribly surprised.

Student-loan debt and students aren’t homogeneous blobs. The absolute amount of the student-loan debt matters only in relationship to what the debt funded. A student who accumulates $100,000 in student loans and graduates with a highly desirable bachelors degree in mechanical engineering will likely hit the ground running. The opportunity for high-paying employment the mechanical engineering degree produced was well worth the $100,000 in student-loan debt. The $100,000 was, therefore, a legitimate investment: It produced higher annual cash flow.

On the other hand, if the same $100,000 funded a degree that would raise annual cash flow only minimally (or not at all), then the $100,000 wouldn’t be an investment. In this case, the $100,000 really funded current consumption, which is rarely a good use of debt.

The good news is that Freddie Mac has found that many millennials are using debt properly – to invest in degrees that raise annual cash flow. Freddie Mac found a 61% probability someone with a bachelors degree will own a home compared with 30% for someone with no degree. Better yet, Freddie Mac finds that educated young people, millenials in particular, still desire to own a home.

Freddie Mac’s findings are yet another reason we don’t fret about today’s low homeownership rate. To the contrary, we view it as pent up demand that will lead to higher future sales.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

The employment data for September were released last Friday. The numbers were of the shoulder-shrug variety.

Payrolls increased by 156,000 for the month, considerably lower than the 200,000-or-more monthly gains that we had seen earlier in the year. As for the unemployment rate, it actually increased, drifting up to 5% from 4.9%. Few economists were alarmed, though. The unemployment rate rose because more discouraged workers sought employment. (Discouraged workers aren’t counted in the official unemployment tally.)

The September employment numbers should have been much ado about nothing, except they weren’t. The numbers were just good enough to convince financial markets that it’s “game on” – an interest-rate increase is on the way.

The yield on the 10-year U.S. Treasury note rose to 1.8%, the highest it has been since mid-June. The 10-year note, in turn, leads long-term mortgage rates. The 30-year fixed-rate loan continues to move higher. Depending on the day, a quote of 3.5% on the 30-year loan can still be found. But more often, 3.625% is likely for a top-tier conventional loan.

Election Day is Nov. 8; Federal Reserve officials meet again on Nov. 2. We’d be shocked if the Nov. 2 meeting produced an interest-rate increase. Most people concur with us. Traders in federal funds rate futures contracts are betting only an 11% chance of a rate increase at the next meeting. As for December, that’s a different story. These same traders are betting a 70% chance a rate increase will occur then.

With more market participants anticipating a rate increase, it’s only natural that rates would rise ahead of the blessed event. Markets are forward-looking entities. Changes in the perception of what the future holds moves market prices, including interest rates.

Of course, we’ve been down this road before. Last year around this time, mortgage rates began to drift higher as the market priced in a rate increase for December. But once the rate increase was announced, mortgage rates plateaued and then drifted lower through the first half of 2016. Those lows held until a few weeks ago.

As Mark Twain observed, history doesn’t repeat, but it frequently rhymes. Should the Fed raise the federal funds rate in December, the increase will likely be no more than 25 basis points – the same increase as last year. (As a percentage, this next increase will actually be less than last year’s increase. The Fed doubled the fed funds rate last year; this next increase, it will increase it by half.)

Given sluggish global economic growth, 25 basis points might be all we see until December 2017. And if history really does rhyme, we could see mortgage rates drift lower again. That means a 3.25% quote on a conventional 30-year loan could again be in the cards for mid-2017.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

CalculatedRiskBlog.com posted an interesting statement by an Oregon government economist on housing this week. The economist explained the shift to renting away from buying that has occurred over the past decade. His analysis focused on household finances, demography, and preferences – all of which have supported renter-market growth in recent years. (Homeownership is at a multi-decade low.)

This same economist also said that new data point to a change. It appears that the pendulum could swing back to ownership, and it could swing back sooner than conventional opinion expects.

A drop-off in renting momentum is one reason. The number of renters ticked up 0.1% nationwide last year. That’s still a gain for renting, but the year-over-year change was minimal compared to previous years. Renting momentum has slowed considerably. This could indicate that 2015 was the peak year for renting. What’s more, demography would support that contention.

The 30-to-39 age group is an important home-buying group. This age group will increase significantly over the next 10 years. Just as important, this group is growing in affluence. More of them have gained the financial wherewithal to buy a home. Just as important, they want to buy a home. Surveys from Fannie Mae, Freddie Mac, and other sources continually show that the vast majority of people, including those populating the younger generations, aspire to own a home.

With this data in mind, we see no reason housing sales and single-family construction shouldn’t continue to trend higher in the coming years.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Last week, we presented a minor lament on the difficulty in forecasting interest rates. Then, of course, we offered a forecast: We didn’t believe that the Federal Reserve would raise the federal funds rate – the base rate for most other interest rates – no sooner than December, if not later.

We also implied there was a good chance that mortgage rates would hang low for a while. That is, they would hang in the same low, tight range that reigned through most of August (when quotes on best-execution 30-year loans were bound between 3.375% and 3.5%). As we write, we’re more likely to see best-execution quotes of 3.5% or above.

It’s no surprise that mortgage rates moved higher; many debt-security yields expanded this week, most notably the yield on the 10-year U.S. Treasury note. As you may know, the 10-year note holds significant sway over mortgage-backed securities, which hold significant sway over mortgage rates (long-term rates in particular).

The yield on the 10-year U.S. Treasury note spiked 10 basis points on Tuesday after Richmond Federal Reserve Bank President Jeffrey Lacker added his support for raising the fed funds rate sooner than later. The pro-interest-rate-hike contingent of Fed officials is growing. Several regional Fed bank presidents (like Lacker) now believe that implementing a series of small interest-rate increases would be good for the economy, even if the economy continues to post sub-standard growth. (By the way, Fed Chair Janet Yellen isn’t one of the supporters.)

A rate hike this December appears more likely this week than last week. Traders in fed funds rate futures contracts now are betting a 64% chance a rate increase will occur in December. (Some are even betting there’s a chance for a rate increase in early November at the next Fed meeting.)

This is all rather new in the annals of the Federal Reserve’s 113-year history. That is, Fed officials publicly guiding markets on interest-rate policy.

Before the 2008 financial crisis, Fed officials were a reticent lot. There was little foreshadowing that a rate increase or decrease would occur or what the amount would be (though you could glean what Fed officials could do by vetting the same data they vet.) In the good ole days, before the 2008 financial crisis, Fed officials were mostly supporting players on the financial stage. Today, they’re lead actors: Any utterance by a Fed official produces a meaningful swing in interest rates.

Accurately forecasting mortgage rates is a difficult enough proposition. It’s all the more difficult when a Fed official can change the outlook with an off-hand remark to the media. How often over the past three years has a Fed official hinted that a rate increase was imminent only to see the rate increase postponed? More than we can count.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.

Your closet is actually a lot like a boyfriend. It keeps you warm. It’s (almost) always there for you. It never picks up after itself. And it doesn’t like to do laundry.

Also, you can make closet mistakes. They’re different from boyfriend mistakes (getting passive aggressive with your closet isn’t really a thing), but they’re mistakes nonetheless.

Here are ten likely culprits – some have to do with the closet itself, and others are questionable fashion choices you might be making.

Acting Like You Only Have One Shelf

Turn one shelf into two by using storage boxes as a base. You’ll make room for purses, shoes and more piles of clothes on top.

Continuing to Keep Skirts from College in There

You looked great in that miniskirt, you really did. And your legs would look fantastic in it now if you put it on. But let’s be honest, you’re not going to. Take all those nostalgic outfits from your undergrad days and get rid of ‘em.

Mixing Your Clothing Piles

Sure, it may seem fun and exciting to stack those jeans right alongside your sweaters. But it’s an organizing disaster! Try these pile dividers for your closet if the temptation to mix and match is problematic.

Storing "Aspirational" Outfits That Don't Fit

It’s tempting to get a pair of jeans or a dress that you’ll diet-or-exercise your way into. But we don’t think it’s a great habit. First of all, it means you’re taking up precious closet space with clothing you’re not wearing. Second, you should wear things you feel comfortable and beautiful in now!

Limiting Your Clothing Storage to Just Your Closet

If you’re running low on space, you can use stacked suitcases for extra storage. If it’s a stylish suitcase, you can use it as a bedside table or a table at the foot of the bed. Keep accessories, out-of-season clothes, or any items you don’t need every day in your suitcase storage.

Settling for a Single Level of Hangers

You can use a pull tab from a soda can to layer hangers. If you’re not a fan of soda, you can use these hangers for your shirts and dresses and these hangers for your skirts and pants. Cha ching – one closet becomes two!

Capitalize on every empty wall in your closet. Small hanging racks for purses, hats or coats are a great way to fill the space across from your hanging clothes or in the inside of the closet door. You could also hang necklaces on a nail.

Thinking Tube Tops Are a Good Idea

There’s just too much risk involved here, ladies. And remember, the guy who invented strapless bras never had to wear one, which is probably why they're so uncomfortable.

Pretending You Can See in the Dark

If you can’t see a piece of clothing, you probably won’t put it on. And a lot of closets suffer from bad lighting. If this sounds like you, throw an extra light on the wall. These lights stick to the wall so they’re a good choice.

When you are buying or selling property in today's Harrisburg PA real estate market, it's important to have confidence in your real estate professional. Don’s commitment as your Harrisburg PA REALTOR® is to provide you with the specialized real estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why Don’s goal is to keep you informed on trends in Harrisburg PA real estate. With property values continuing to rise, real estate is a sound investment for now and for the future.

As a local area expert with knowledge of Harrisburg PA area communities, Don’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling a home or would just like to have additional information about real estate in your area, please don't hesitate to call me at (717) 657-8700, complete my online form, or e-mail me at don@donroth.com.